Aliko Dangote, Africa’s richest person and owner of the continent’s largest refinery, has begun construction of a fuel storage facility in Namibia. The project will serve as a distribution hub for petroleum products across southern Africa.
Dangote said the investment aims to make fuel more affordable and accessible to landlocked African countries by improving regional supply routes.
The $2.5 billion project will include a fuel storage depot near the port of Walvis Bay and a 1,700-kilometer pipeline linking Namibia to Botswana and South Africa, with plans to extend supplies to other countries.
According to Dangote, the project will strengthen Namibia’s energy security while supporting fuel trade and industrial development across the region.
The investment comes as African countries look to reduce their reliance on imported petroleum products, particularly amid disruptions to fuel supplies from the Middle East following the Iran war. Dangote Refinery plans to increase fuel exports to meet growing demand across the continent.
Dangote Group is also supporting plans to develop a $660 million fuel pipeline between Ethiopia and Djibouti. The proposed infrastructure will connect the port of Damerjog in Djibouti to a distribution facility and storage hub in Dewele, Ethiopia.
Following the start of operations at its 700,000-barrel-per-day refinery in Nigeria two years ago, Dangote Group is now expanding its fuel storage and distribution network across African markets.
The group is also planning to build another major refinery in Kenya to supply petroleum products to East African countries.
Meanwhile, the initial public offering (IPO) for a minority stake in Dangote Petroleum Refinery closed last week, attracting applications from investors in 120 countries, including all 54 African countries.
The IPO could raise up to $2.1 billion if the company exercises its greenshoe option, following strong investor demand. Dangote Group plans to use the proceeds to support its $14 billion expansion program, which will increase the refinery’s crude processing capacity from nearly 700,000 barrels per day to 1.4 million barrels per day by 2029.
source:oilprice.com
African Energy Council